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Exhibit 2 <br />OC ANIMAL CARE SERVICES <br />NEW AGREEMENTS FOR SHELTER CONSTRUCTION AND <br />SERVICES <br />MAJOR TERMS <br />Participation Agreement (New Shelter) <br />1. Establishes a Design Advisory Board consisting of three (3) city <br />representatives. Two of the representatives must be from cities <br />individually constituting more than 8% of the total usage of the <br />existing shelter (Anaheim, Santa Ana, Garden Grove or Orange). <br />2. If at any time the County elects to discontinue providing animal <br />sheltering services, the cities have an option to take over the operation <br />of the shelter from the County under a ground lease arrangement. <br />This option is in play for 50 years. <br />3. Maximum shelter cost is based on a $35M shelter with the County <br />contributing the first $5M toward costs incurred after April 1, 2016. <br />The remaining $30M is divided proportionally among cities based on <br />the previous 5 years of shelter usage. See attached draft exhibit D. <br />4. Payments may be made in advance, or at the election of each <br />individual city, over a ten year period. For those cities electing the 10 <br />year payment period, payments will be due quarterly beginning in <br />October 2016 and will include an additional funding cost (0.77 %) See <br />attached draft exhibit E. <br />5. After year 5, each city's respective percentage share of the maximum <br />construction costs shall be recalculated based on the same formula as <br />set forth in draft exhibit D but using then current statistical data. If any <br />city's respective percentage share is altered by the recalculation by <br />more than 5 %, then each city's total share of the maximum <br />construction costs shall be recalculated so that the originally calculated <br />percentage shall be applied to one half of the maximum construction <br />costs and the recalculated percentage shall be applied to the second <br />half of the maximum construction costs. <br />19G -5 <br />